The Shidel Thesis and the Braum

The reason the Europe got capitalism is because no sovereign existed who could impose that will from that position. The emperor wants to maintain stability and capitalism, capitalist action, capitalist behavior is destabilizing inherently. So of course he wants to stop it. That long-term sacrifice in their minds is better than in the short-term being dispossessed by losing an existential war with one of your other European rivals. You have to fight and conquer because you have no stable center in a class society.